For years, the matter of balancing Pakistan's supply against the demand for electricity has remained a largely unresolved matter. Pakistan faces a significant challenge in revamping its network responsible for the supply of electricity. Pakistan's electricity producers are now seeking a parity in returns for both domestic and foreign investors which indicates it to be one of the key unresolved issues in overseeing a surge in electricity generation when the country faces growing shortages.

As of 2013 massive long-standing electricity shortages continued with long-standing failure to provide reliable service and rampant corruption being met by public protests, unauthorized connections, and refusal by consumers to pay for intermittent service.[2][3][4] Electricity generation in Pakistan has shrunk by up to 50% in recent years due to an over-reliance on fossil fuels.[5] In 2008, availability of power in Pakistan falls short of the population's needs by 15%[6] Pakistan was hit by its worst power crisis in 2007 when production fell by 6000 Megawatts and massive blackouts followed suit.[6]Load Shedding and power blackouts have become severe in Pakistan in recent years.[7] The main problem with Pakistan's poor power generation is rising political instability, together with rising demands for power and lack of efficiency.[8] Provincial and federal agencies, who are the largest consumers, often do not pay their bills.[9] China, Central Asia and Iran have been offering to export electricity to Pakistan at subsidized rates but the government of Pakistan has not yet responded to the offers for unknown reasons.[10][11] The country has begun diversifying its energy producing capacity by investing in wind and solar energy parks to help offset the energy shortage while larger projects such as the Diamer-Basha Dam and new nuclear plants are under construction.[12]

There are four major power producers in country: WAPDA (Water & Power Development Authority), KESC (Karachi Electric Supply Company), IPPs (Independent Power Producers) and PAEC (Pakistan Atomic Energy Commission).

The break-up of the installed capacity of each of these power producers (as of Jan-2012) is as follows:[citation needed]

WAPDA Hydel

Tarbela 3478 MW

Mangla 1000 MW

Ghazi – Barotha 1450 MW

Warsak 243 MW

Chashma 184 MW

Dargai 20 MW

Rasul 22 MW

Shadi-Waal 13.5 MW

Nandi pur 14 MW

Kurram Garhi 4 MW

Renala 1 MW

Chitral 1 MW

Jagran (AK) 30 MW

Khankhwar 72 MW

AllaiKhwar 121 MW

Gomal Zam Dam 17 MW

Jabban 22 MW

Duber Khwar Dam 130 MW

Total Hydel 6,823 MW

WAPDA Thermal

Gas Turbine Power Station, Shahdra 59 MW

Steam Power Station, Faisalabad 132 MW

Gas Turbine Power Station, Faisalabad 244 MW

Gas Power Station, Multan 195 MW

Thermal Power Station, Muzaffargarh 1350 MW

Thermal Power Station, Guddu 1655 MW

Gas Turbine Power Station, Kotri 174 MW

Thermal Power Station, Jamshoro 850 MW

Thermal Power Station, Larkana 150 MW

Thermal Power Station, Quetta 35 MW

Gas Turbine Power Station, Panjgur 39 MW

Thermal Power Station, Pasni 17 MW

Total Thermal 4811 MW

WAPDA’s total hydel and thermal capacity is 11,272 MW. Hydel electricity generated by WAPDA varies between two extremities, i.e., between minimum of 2,414 MW and maximum of 6,761 MW depending upon the river flow.

Karachi Electric Supply Company

Thermal Power Station, Korangi 316 MW

Gas Turbine Power Station, Korangi 80 MW

Gas Turbine Power Station, SITE 100 MW

Thermal Power Station, Bin Qasim 1260 MW

KESC total generation capacity is 1756 MW.

Independent Power Producers (IPPs)

Hub Power Project 1292 MW

AES Lalpir Ltd, Mahmood Kot Muzaffargar 362 MW

AES Pak Gen, Mahmood Kot Muzaffargar 365 MW

Altern Energy Ltd, Attock 29 MW

Fauji Kabirwala Power Company, Khanewal 157 MW

Gul Ahmad Energy Ltd, Korangi 136 MW

Habibullah Coastal Power Limited 140 MW

Japan Power Generation, Lahore 120 MW

Kohenoor Energy Limited, Lahore 131 MW

Liberty Power Limited, Ghotki 232 MW

Rousch Power, Khanewal 412 MW

Saba Power Company, Sheikhupura 114 MW

Southern Electric Power Company Limited, Raiwind 110 MW

Tapal Energy Limited, Karachi 126 MW

Uch Power Limited, Dera Murad Jamali, Nasirabad 586 MW

Attock Gen Limited, Morgah Rawalpindi 165 MW

Atlas Power, Sheikhupura 225 MW

Engro Energy Limited, Karachi —– MW

Kot Addu Power Company Limited (Privatized) 1638 MW

Saif Power Plant Qadirabad, Sahiwal 225 MW

Sitara Energy 80 MW

Nishat Chunian Power 200 MW

Nishat Power Limited 200 MW

Total generation capacity of IPPs is 7070 MW.

Pakistan Atomic Energy Commission

KANUPP 137 MW

CHASNUPP-1 325 MW

CHASNUPP-2 340 MW

KHUSHAB 50 MW

Total electricity generated from PAEC is 852 MW.

The total power generation capacity of Pakistan is 21,143 MW and the electricity demand (as of April 2010) is 14,500 MW and PEPCO is merely generating 10,000 MW.

During 2010 Pakistan floods and 2008 Kashmir earthquake power stations, power distribution and transmission and other energy infrastructures were damaged. During the floods and rainfalls the recently constructed Jinnah hydroelectric power plant was flooded in addition to severe damages to transmission and distribution network and installations while several power plants and refineries were threatened by rising waters and had to be shut down. Natural gas field output had to be reduced as the flood waters approached the wells. There has also been some concern by Pakistani nuclear activists over the effect of natural disasters on nuclear plants specially over the Chashma Nuclear Power Complex, since the plant lies over a geological fault.[15][16][17][18][19][20][21][22][23][24][25][26][27][28] Due to over reliance of Pakistan on dams for electricity generation,[29]some environmental impacts of dams such as submergence of usable/ecological land and their negative impact on Pakistan's mangrove forests due to loss of river silt load, as well as increased risk of severe floods have become evident.[30][31][32][33]

^Declan Walsh (May 18, 2013). "Pakistan, Rusting in Its Tracks". The New York Times. Retrieved May 19, 2013. natural disasters and entrenched insurgencies, abject poverty and feudal kleptocrats, and an economy near meltdown